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Measure Name
Date when measure came into force
Budget 2011: Alcohol Rates 2011/03/28
Budget 2011; RPI + 2% increase 2011/03/28
Increase of excise rates 2012/03/26
Results 1 - 3 of 3.

Generic Tax Name Excise duty - Alcoholic beverages (EU harmonised)
Tax name in the national language Beer, Wine, Cider and Perry, Alcohol
Tax name in English Beer, Wine, Cider and Perry, Alcohol
Member State UK-United Kingdom
Tax in force since 1979/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Alcoholic Liquor Duties Act 1979, as amended by subsequent finance acts; Alcoholic Liquors (Amendment of Enactments Relating to Strength and to Units of Measurement) Order 1979; Isle of Man Act 1979. The Customs and Excise Management Act 1979.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

UK

 
Taxpayers

- Beer:

Producers of beer in the UK are required to be registered. Packagers of beer may also be registered if they wish to receive beer in duty suspension for packaging. Beer may be received into registered premises from importation or from an excise warehouse without payment of duty.

- Wine:

Producers of wine and made‑wine in the United Kingdom are required to possess an excise licence where the product is made for sale. Duty becomes chargeable on the manufacture of the wine & made‑wine; however, it is not actually charged until the wine or made‑wine is released from the winery for consumption.

- Alcohol:

All distillers, rectifiers and compounders are required to possess an excise licence. Duty becomes chargeable on the manufacture or distillation of the spirits, however, it is not actually charged until clearance to home use at importation or on delivery from an excise warehouse; but a period of deferment of the duty is allowable.

 
Tax object and basis of assessment

- Beer:

Beer, ale, porter, stout and any other liquor manufactured for sale that is described as beer or a beer substitute and which is of an alcoholic strength exceeding 1.2 % by volume.

This includes mixtures of beer with non‑alcoholic drinks, for example shandy. The legal definition of beer includes beer of an alcoholic strength exceeding 0.5 %, but duty is not payable where the strength exceeds 0.5 % but does not exceed 1.2 %.

 

The excise duty on beer is assessed by reference to the quantity and alcoholic strength.

 

- Wine: 

Wine and made wine imported into the United Kingdom or produced for sale in the United Kingdom and which is of a strength exceeding 1.2 % alcohol by volume.

"Wine" means any liquor obtained from the alcoholic fermentation of fresh grapes or the must of fresh grapes, whether or not the liquor is fortified with spirits or flavoured with aromatic extracts; "made wine" means any liquor obtained from the alcoholic fermentation of any substance, or by mixing a liquor so obtained or derived from a liquor so obtained with any other liquor, but does not include wine, beer, black beer, spirits or cider.

 

The rates of excise duty chargeable on wine and made wine on their strength measured by reference to the percentage of alcohol by volume at a temperature of 20 °C.

 

- Cider and Perry:

The excise duty is payable on cider (or perry) of a strength less than 8.5 % alcohol by volume (at a temperature of 20 °C) obtained from the fermentation of apple or pear juice without the addition at any time of any alcoholic liquor or of any liquor or substance which communicates colour or flavour other than such as the Commissioners of HM Revenue and Customs may allow as appearing to them to be necessary to make cider (or perry). There are two strength bands for still cider and perry; and two more bands for sparkling cider (or perry).

 

- Alcohol:

Spirits made in the United Kingdom, imported spirits and goods containing spirits, delivered for home use, and which are of a strength exceeding 1.2 % alcohol by volume.

 
Deductions, Allowances, Credits, Exemptions

  Exemptions:

- Beer:

Under the Small Brewers relief Scheme, production up to 5,000 hectolitres is eligible for 50% relief on duty payable. Brewers producing more than 5,000 but less than 30,000 hectolitres are entitled to the same duty relief on their first 5,000 hectolitres of production but the remaining production is payable at the full rate. Those brewers producing more than 30,000 but less than 60,000 hectolitres receive relief according to taper formulae. Brewers producing more than 60,000 hectolitres receive no relief.

 - Cider and Perry:

There is an exemption for cider makers who produce less than 70 hectolitres per year.

- Alcohol:

Spirits produced in the United Kingdom are generally relieved of excise duty if they are converted to denatured alcohol to make them non‑potable or if they are used for medical or scientific purposes. Similarly, spirits contained in imported products which are not for human consumption or which are used for medical purposes may generally be relieved of duty without undergoing methylation provided they are denatured on receipt by the user and are not contained in goods produced for sale.

 
Rate(s) Structure
Beer
Standard rate
(in national currency)
Reduced rate
(in national currency)
  "low alcohol" "independent small breweries"
per hl
per °Plato
per hl
per °alcohol
per hl
per °alcohol
per hl
per °Plato
per hl
per °alcohol

Wine
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still
Sparkling

Fermented beverages other than wine and beer
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still
Sparkling

Intermediate products
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still
Sparkling

Ethyl alcohol
  Standard rate
(in national currency)
Reduced rate
(in national currency)
  per hl per hl
Still

Reduced rates (general comments):

  • Beer: Low alcohol: not exceeding 2.8%, Independent small breweries: yearly production limited to 200,000 hl
  • Wine: <= 8,5% vol.
  • Fermented beverages other than wine and beer: <= 8.5% vol.
  • Intermediate products: <= 15% vol.
  • Ethyl alcohol: yearly production limited to 10 hl of pure alcohol
Comments

Rates above as of 25th March 2014:

Beer:

  • Low alcohol: 1.2-2.8%, pays 8.62GBP per ° alcohol,
  • High strength beer, above 7.5% pays an additional GBP 5.29 per ° alcohol,
  • Independent small brewers rate (limited to 60,000 hl):
    • yearly production up to 5,000 hl pay half the general rate,
    • yearly production of 5,001 - 30,000 hl pay: (production in hl - 2,500 hl) / (production in hl) * general rate,
    • yearly production of 30,001 to 60,000 hl pay: production in hl - (2,500 hl - (1/12 * production > 30,000 hl)) / (production in hl) * general rate.

Wine:

  • Still Wine >1.2%, ≤ 4%; GBP 84.21 per hl
  • Still Wine >4%, ≤ 5.5%; GBP 115.80 per hl
  • Still Wine >5.5%, ≤ 15%; GBP 273.31 per hl
  • Still Wine >15%, ≤ 22%;  GBP 364.37 per hl

 Fermented beverages other than wine and beer:

  • This refers to cider and perry.
  • Still cider and perry >1.2%, ≤ 7.5%; GBP 39.66 per hl
  • Still cider and perry >7.5%, ≤ 8.5%; GBP 59.52 per hl
  • Sparkling cider and perry >1.2%, ≤ 5.5%; GBP 39.66 per hl
  • Sparkling cider and perry >5.5%, ≤ 8.5%; GBP 264.61 per hl
 
Tax due date

- Beer:

Duty normally becomes due when beer is released from registered premises or from an excise warehouse for consumption. In the case of beer delivered from registered premises, the aggregate net charge on all deliveries for each calendar month is payable by the 25th day of the following month. In the case of beer delivered from an excise warehouse, duty charge due on or after the 15th day of one month and not later than the 14th day of the next month becomes payable on the 29th day of that next month. Excise duty on imported beer delivered for consumption is chargeable at importation, but a period of credit similar to that for beer delivered from an excise warehouse is allowable.

 

- Wine:

Declaration and payment to HM Revenue and Customs is made in a monthly return by the 15th day of the month following that in which the duty is incurred. Alternatively, the wine & made‑wine can be delivered to an excise warehouse without payment of duty. Duty on imported wine and made‑wine becomes chargeable on importation or, if the wine or made‑wine is warehoused, on delivery for home use from the excise warehouse. However, a period of deferment of the duty is allowed on all imported wine and made‑wine, whether from the EC or third countries. Duty chargeable on or after the 15th day of one month and not later than the 14th day of the next month becomes payable on the 29th day of that next month. A similar period of credit is allowed for goods delivered from warehouse.

 

- Alcohol:

Duty chargeable on or after the 15th day of one month and not later than the 14th day of the next month becomes payable on the 29th day of that next month.

 
Tax collector

Any person who, on premises in the United Kingdom, makes cider or perry for sale in excess of a certain limit must be registered in respect of his premises. Excise duty becomes chargeable on the manufacture of the cider or perry: however, it is not actually charged until the cider or perry is delivered from the maker's premises for home use. Declaration and payment is made to HM Revenue and Customs in a monthly return by the 15th of each month following that in which the duty is incurred. Alternatively, the cider can be delivered to an excise warehouse without payment of duty. Excise duty on imported cider becomes chargeable on importation or, if warehoused, on delivery for home use from the excise warehouse. However, a period of deferment of the duty is allowed on imported cider, whether from the EC or third countries. Duty chargeable on or after the 15th day one month and no later than the 14th day of the next month becomes payable on the 29th day of that next month. A similar period of credit is allowed for goods delivered from warehouse.

 
Special features

-Beer:

Where beer liable to excise duty is brewed solely for the purposes of research or of experiments in brewing, under certain conditions, the duty may be remitted. Registration is not required where the beer producer brews for own domestic consumption; or brews only for research or experimental purposes.

Refunds:

-Drawback: excise duty is repaid if duty‑paid beer is exported as merchandise or shipped as stores.

-Spoilt beer: excise duty may be repaid on beer which has become unmerchantable after it has been delivered from registered premises on payment of duty and which has subsequently been destroyed under supervision or returned to registered premises.

-Beer used as an ingredient: subject to certain conditions, excise duty may be repaid on beer used in the production or manufacture of beverages and other articles of a low alcohol content.

-Wine:

Imported wine or made‑wine which is rendered sparkling or effervescent whilst in a bonded warehouse is liable to the same duties as imported sparkling wine or made‑wine.

Refunds:

-Drawback: EC countries only - subject to certain conditions, excise duty is repaid if duty‑paid wine or made‑wine is exported to another Member State or destroyed.

-Spoilt wine or made‑wine: excise duty may be repaid on wine or made‑wine which has become unmerchantable after it has been delivered from the producer's premises on payment of duty, subject to certain conditions, and has been returned to the producer's premises subsequently.

-Wine or made‑wine used as an ingredient: subject to certain conditions, excise duty may be repaid on wine or made‑wine used in the production or manufacture of beverages and other articles of a low alcohol content.

-Cider & Perry

Refunds:

-Drawback: EC countries only - subject to certain conditions, excise duty is repaid if duty‑paid cider for perry is exported to another Member State or destroyed.

-Spoilt cider or perry: excise duty may be repaid on cider or perry which has become unmerchantable spoilt or unfit for use after it has been delivered from the maker's premises on payment of duty, subject to certain conditions, and has been returned to the maker's premises subsequently.

-Cider or perry used as an ingredient: subject to certain conditions, excise duty may be repaid on cider or perry used in the production or manufacture of beverages and other articles of a low alcohol content.

-Alcohol

Refunds:

-Drawback: allowed on eligible dutiable goods on which duty has been paid for export to third countries or despatched to other Member States or warehoused for export or destroyed.

-Spirit used as an ingredient: subject to certain conditions, excise duty may be repaid on spirit used in the production or manufacture of beverages and other articles of a low alcohol content.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214aa + d214ab

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 10,201.00 GBP 0.61
2011 9,867.00 GBP 0.61
2010 9,317.00 GBP 0.60
2009 8,746.00 GBP 0.59
2008 8,689.00 GBP 0.57
2007 8,103.00 GBP 0.55
2006 7,813.00 GBP 0.56
2005 7,969.00 GBP 0.60
2004 7,799.00 GBP 0.62
2003 7,473.00 GBP 0.63
2002 7,211.00 GBP 0.64
2001 6,896.00 GBP 0.65
2000 6,594.00 GBP 0.64

Comments